Correlation Between Hygon Information and Dow Jones
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By analyzing existing cross correlation between Hygon Information Technology and Dow Jones Industrial, you can compare the effects of market volatilities on Hygon Information and Dow Jones and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hygon Information with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Dow Jones.
Diversification Opportunities for Hygon Information and Dow Jones
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Dow is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Hygon Information is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hygon Information Technology are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Hygon Information i.e., Hygon Information and Dow Jones go up and down completely randomly.
Pair Corralation between Hygon Information and Dow Jones
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 4.11 times more return on investment than Dow Jones. However, Hygon Information is 4.11 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.1 per unit of risk. If you would invest 12,257 in Hygon Information Technology on October 26, 2024 and sell it today you would earn a total of 797.00 from holding Hygon Information Technology or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hygon Information Technology vs. Dow Jones Industrial
Performance |
| Timeline |
Hygon Information and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Hygon Information Technology
Pair trading matchups for Hygon Information
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Hygon Information and Dow Jones
The main advantage of trading using opposite Hygon Information and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information position performs unexpectedly, Dow Jones can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dow Jones will offset losses from the drop in Dow Jones' long position.| Hygon Information vs. Zhongfu Information | Hygon Information vs. Guangdong TianYiMa Information | Hygon Information vs. Emdoor Information Co | Hygon Information vs. ButOne Information Corp |
| Dow Jones vs. Asure Software | Dow Jones vs. Amkor Technology | Dow Jones vs. Radcom | Dow Jones vs. Senmiao Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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